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The labor market hit the brakes in August, probably driven by both demand and supply factors as a consumption demand slowdown along with increasing health concerns, both associated with the Delta variant, impacted the labor market.
In July, the unemployment rate was 14.3%, lower than in July 2020, but higher than in July 2019. Between June and July 2021, with comparable data, the unemployment rate decreased by 1.1 p.p.. This reduction was leveraged on employment, which grew considerably in July.
September 2, 2021
Spain | Job creation continued in August and the fall in unemployment surprised again.
Social Security affiliation and unemployment decreased in August (-118,000 and -82,600, respectively). Adjusted for negative seasonality, BBVA Research estimates that employment rose by 32,000 and unemployment fell by 104,000. The number of workers with limited activity is now below 500,000.
Participation in the labor market practically recovered; the return to classes on-site will improve the recovery of labor participation. Formal job creation surprises in July; additional, the removal of outsourcing allows the recovery and exceeds permanent employment levels prior to the pandemic.
August 10, 2021
Mexico | 3.8 million more poor and 2.1 million more in extreme poverty between 2018-2020
Between 2018 and 2020, the population living in poverty increased by 7.3%, from 51.9 to 55.7 million inhabitants, and the population living in extreme poverty grew 24.1%, from 8.7 to 10.8 million. The increase in the population with a lack of access to health services stands out, which went from 16.2% to 28.2%.
Millennials played a critical role in reopening during the pandemic. 20 million Millennials worked in the second half of 2020, which is almost 1 in 3 active workers. The current income of a Millennial amounted to 7,251 pesos per month, that of Generation X was 12.3% higher (8,141 pesos).
In June 2021, the national unemployment rate stood at 14.4% and the urban unemployment rate at 17.1%, lower than the observed the same month last year, but much higher than in 2019. The seasonally adjusted unemployment rate remained relatively stable in June and the employment level was similar to that of October 2020.
In 9 out of 10 households, there was a fall in labor income. The lag in the labor market's recovery prevails, with high levels of unemployment, underemployment and informality, and a slow creation of formal employment.